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Citigroup, MBIA and Arcelor Decline

By

Rob Curran

Updated Nov. 6, 2008 12:01 a.m. ET

NEW YORK -- As stocks plunged, sellers unloaded financial stocks such as Citigroup and Bank of America in the last hour of trading.

Traders say the phenomenon of declines in the last half hour reflects the mechanics of mutual-fund selling. Funds often place "market on close" orders because the value of the fund is calculated based on closing prices. Amid clients' demands for cash back and changes in strategy, funds of all stripes have placed plenty of sell orders recently.